O’Reilly Alphatech (OATV), the investment vehicle of media company O’Reilly Media, has exited US-based restaurant payments app Cover following an acquisition by hospitality service provider Velocity Mobile.
The terms of the acquisition have not been revealed. It follows Velocity’s $16m series A round, announced at the same time.
Cover has created a smartphone app for users to pay their bills in restaurants. The company has partnered with more than 350 food outlets in New York, San Francisco and Los Angeles.
Cover’s staff will join Velocity across different units, while Velocity will invest in the further development of Cover’s products. Clients will be able to choose whether they keep using Cover or switch to Velocity’s platform, which includes a customer relationship management tool.
As part of the acquisition, Mark Egerman, co-founder of Cover, will be promoted to Velocity’s executive vice president of payments, while fellow co-founder Andrew Cove will join Velocity’s advisory board.
OATV backed a $5.5m series A round in July 2014, led by Spark Ventures. Lerer Ventures and assorted private individuals also contributed to the round. OATV, Lerer and angel investors previously also injected $1.5m in seed funding in 2013.